Milestones to Retirement

Milestones to Retirement

July 19, 2017

As you approach retirement age, it’s important to remember your Milestones to Retirement.  Use this informative guide as a quick reference throughout your retirement years.



Up to this point, contributions to your 401(k), 403(b), and 457(b) were capped at $18,000. Now that you are 50 years of age, you may be eligible to put in an additional $6,000 as a catch-up provision to total $24,000. The same is true for your personal IRA. Up until now, the limit has been $5,500. Now you may be eligible to contribute an extra $1,000 for a total $6,500. The annual limitation on catch-up contributions to a SIMPLE-401(k) and a SIMPLE-IRA is $3,000.1 (Contribution limits apply for 2017)
55 Should you separate from your existing employer, you could be eligible to gain access to your tax-deferred savings plan without paying the 10% tax penalty. Check to see if you qualify for one of the exceptions listed in the federal tax code.
59 12 Congratulations! In the eyes of the IRS, you’re considered old enough to retire and start using your hard-earned tax-deferred money from your retirement plans, such as IRAs and 401(k)s, without having to pay the 10% early distribution tax penalty.
60 Though it could benefit you to wait, you can start receiving widow or widower Social Security benefits at a reduced rate.
62 Depending on your plan and if you’re eligible, you could begin receiving your full pension benefits from your employer(s). You can also start your Social Security at a substantially lower rate than if you waited until Full Retirement Age (FRA). This could also affect your spouse’s benefit even more.
65 At this age, many employers will allow you to access your full pension benefits, and you should be able to qualify for your Medicare benefits as well. For Social Security, you are eligible for full Social Security benefits — unless you were born after 1937.
66 Your birthday will determine your Full Retirement Age (FRA) with Social Security. Eligibility for widow and widower’s benefits is based on your birthday — unless you were born prior to 1937.
67 67 is the new FRA for those who were born in 1960 or later. This is the earliest age at which you can claim full Social Security benefits.
70 If you’re still delaying your Social Security benefits, delay no more. You have maxed out your Social Security and will no longer receive delayed credits.
70 12 At this age, “Uncle Sam” (the IRS) is ready for you to start taking required minimum distributions (RMDs) from many tax-deferred plans so that they can start collecting taxes on those distributions.

This information was developed as a general guide to retirement and is not intended as tax or legal advice.


Jon Sanchez is a Registered Representative offering securities and advisory services through Independent Financial Group, LLC (IFG), a Registered Broker-Dealer and Investment Advisor. Member FINRA/SIPC. OSJ Branch: 12671 High Bluff Drive Suite 200 San Diego, CA 92130.  Sanchez Wealth Management, LLC and IFG are not afiliated entities. CA Insurance Lic. #0772626.

1 unchanged-at-18000-for-2017

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